Cogent Comms (CCOI) AI Stock Analysis

• Market Cap: $981.93M
• Dividend Yield: 15.67%
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: -6.48%
• EPS Growth: -588.01%
• Country: US
• Employees: 1,899
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.87
• Shares Outstanding: 49,121,160
• 10 Day Avg. Volume: 1,698,723
• 30 Day Avg. Volume: 1,853,200
• PEG Ratio: 0.15
• Price to Book (P/B): 16.44
• Price to Sales (P/S): 3.54
• P/FCF Ratio: -17.99
• Enterprise Value/Market Cap: 4.33
• Enterprise Value/Revenue: 4.39
• Enterprise Value/Gross Profit: 12.12
• Enterprise Value/Ebitda: 23.26
• 1Y Price Target: $30.20
• Price Target Upside: 55.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): -4.14
• Revenue Forecast (FY): $978.87M

• Rating: 41 Neutral
• Price Target: $18.00 ▼(-7.55% Downside)

Cogent Comms is facing significant financial and operational challenges, with declining revenues and high leverage being the most critical issues. Technical analysis indicates bearish momentum, and although there are some positive aspects like EBITDA growth, the overall outlook remains cautious.

Positive Factors

Wavelength Services Growth

The substantial growth in wavelength services revenue indicates a strong demand and potential for market share expansion, supporting long-term revenue growth.

EBITDA Margin Improvement

Improved EBITDA margins reflect better operational efficiency and cost management, enhancing profitability and financial health over time.

Data Center Monetization Strategy

The strategy to monetize data centers will provide liquidity and reduce leverage, improving the company's balance sheet and financial flexibility.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in maintaining market position and customer retention, potentially impacting long-term financial stability.

High Leverage

High leverage limits financial flexibility and increases risk, potentially affecting the company's ability to invest in growth opportunities.

Challenges in Revenue Recognition

Delays in revenue recognition from installed services can hinder cash flow and reflect operational inefficiencies, impacting financial performance.

Cogent Comms Business Overview & Revenue Model

Company Description

Cogent Communications Holdings, Inc., through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services in North America, Europe, Asia, South America, Australia, and Africa. The company offers on-net Internet access and private network services to law firms, financial services firms, and advertising and marketing firms, as well as heath care providers, educational institutions and other professional services businesses, other Internet service providers, telephone companies, cable television companies, Web hosting companies, media service providers, mobile phone operators, content delivery network companies, and commercial content and application service providers. It also provides Internet access and private network services to customers that are not located in buildings directly connected to its network; and on-net services to customers located in buildings that are physically connected to its network. In addition, the company offers off-net services to corporate customers using other carriers' circuits to provide the last mile portion of the link from the customers' premises to the network. Further, it operates data centers that allow its customers to collocate their equipment and access the network. The company operates 54 data centers and provides facilities to 3,035 buildings and on-net services to 1,817 to multi-tenant office buildings. It serves primarily to small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations. Cogent Communications Holdings, Inc. was founded in 1999 and is headquartered in Washington, the District of Columbia.

How the Company Makes Money

Cogent Communications generates revenue primarily through its subscription-based model, where customers pay for Internet access and related services on a recurring basis. Key revenue streams include dedicated Internet access, Ethernet transport services, and colocation services. The company also benefits from long-term contracts with its clients, which provide a steady and predictable income. Additionally, Cogent has strategic partnerships with other telecommunications providers and businesses that enhance its service offerings and expand its customer base, contributing further to its earnings. The focus on providing reliable and competitively priced services allows Cogent to attract and retain a diverse range of customers, from small businesses to large enterprises.

Cogent Comms Financial Statement Overview

Summary

Cogent Comms faces significant financial challenges, including declining revenues, negative profitability margins, and high leverage. The company's cash flow position is weak, raising concerns about its ability to sustain operations without external financing.

Income Statement

Cogent Comms has experienced declining revenue growth, with a negative growth rate of -3.44% in the TTM. The company is struggling with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin has also decreased over time, reflecting challenges in maintaining cost efficiency.

Balance Sheet

The balance sheet reveals significant financial leverage, with a high debt-to-equity ratio of -58.14 in the TTM, indicating potential financial risk. The negative return on equity suggests inefficiencies in generating returns for shareholders. The equity ratio is also negative, highlighting a weak capital structure.

Cash Flow

Cash flow analysis shows a concerning trend with negative free cash flow growth and a negative free cash flow to net income ratio. The operating cash flow to net income ratio is low, indicating challenges in converting earnings into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	968.34M	1.04B	940.92M	599.60M	589.80M	568.10M
Gross Profit	350.46M	394.27M	396.69M	371.45M	363.46M	348.95M
EBITDA	182.60M	161.69M	1.56B	229.29M	218.72M	156.28M
Net Income	-194.71M	-204.07M	1.27B	5.15M	48.19M	6.22M
Balance Sheet
Total Assets	3.15B	3.17B	3.21B	1.01B	984.56M	1.00B
Cash, Cash Equivalents and Short-Term Investments	147.09M	198.49M	75.09M	223.78M	319.61M	371.30M
Total Debt	2.65B	2.34B	1.83B	1.36B	1.26B	1.21B
Total Liabilities	3.19B	2.95B	2.60B	1.53B	1.36B	1.29B
Stockholders Equity	-39.17M	222.85M	609.56M	-518.63M	-373.10M	-293.17M
Cash Flow
Free Cash Flow	-186.70M	-203.64M	-112.29M	94.74M	100.34M	84.37M
Operating Cash Flow	9.95M	-8.64M	17.34M	173.71M	170.26M	140.32M
Investing Cash Flow	-96.64M	21.49M	76.73M	-78.97M	-69.92M	-55.95M
Financing Cash Flow	-1.41M	105.92M	-257.85M	-144.85M	-140.82M	-116.00M

Cogent Comms Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCOI, the sentiment is Negative. The current price of 19.47 is below the 20-day moving average (MA) of 21.17, below the 50-day MA of 33.70, and below the 200-day MA of 45.55, indicating a bearish trend. The MACD of -4.64 indicates Negative momentum. The RSI at 33.91 is Neutral, neither overbought nor oversold. The STOCH value of 78.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCOI.

Cogent Comms Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDT	68 Neutral	$1.23B	16.29	27.60%	0.47%	2.13%	18.44%
IRDM	64 Neutral	$1.72B	14.39	22.59%	3.41%	7.30%	21.31%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TDS	56 Neutral	$4.27B	―	1.73%	0.42%	-22.79%	79.90%
LBTYA	55 Neutral	$3.61B	-0.97	―	―	―	―
WOW	50 Neutral	$443.09M	―	-42.79%	―	-8.70%	16.20%
CCOI	41 Neutral	$981.93M	―	-136.94%	15.67%	-6.48%	-588.01%

Cogent Comms Corporate Events

Cogent Communications’ Q3 2025 Financial Performance Overview

Cogent Communications, a multinational Tier 1 facilities-based Internet Service Provider (ISP), specializes in offering high-speed Internet access, Ethernet transport, optical wavelength, optical transport, and colocation services through its all-optical IP network backbone across 302 global markets.

Cogent Communications’ Earnings Call: Mixed Results and Strategic Shifts

The recent earnings call for Cogent Communications painted a mixed picture of the company’s current financial health and future prospects. While there were notable achievements such as significant growth in wavelength services and EBITDA, challenges like a dividend cut, revenue decline, and increased net leverage were also highlighted. The call reflected a balance of positive achievements and significant hurdles that the company needs to address moving forward.

Cogent Comms Announces Leadership Change in Sales

On August 11, 2025, Cogent Communications Holdings, Inc. announced the upcoming retirement of James Bubeck as Vice President of Global Sales and Chief Revenue Officer, effective September 2, 2025. Mark Andrew Harris, who joined the company in 2023 following its acquisition of Sprint Communications, will assume the role, potentially impacting the company’s sales strategy and market presence.

The most recent analyst rating on (CCOI) stock is a Sell with a $65.00 price target. To see the full list of analyst forecasts on Cogent Comms stock, see the CCOI Stock Forecast page.